H-1B visa approvals for Indian IT firms fall by 70% since 2015
The Indian IT services industry has been facing significant challenges in recent years, particularly when it comes to obtaining H-1B visas for its employees. According to a report by the National Foundation for American Policy (NFAP), the number of H-1B visa approvals for Indian IT firms has dropped by a staggering 70% since 2015. This decline has had a profound impact on the industry, with many companies struggling to secure the necessary visas to operate in the United States.
The NFAP report, which cites data from the United States Citizenship and Immigration Services (USCIS), reveals that the top seven Indian IT firms secured just 4,573 initial-employment petitions in FY 2025. This marks a 37% reduction since last year, highlighting the ongoing difficulties faced by the industry. Tata Consultancy Services (TCS) was the only Indian IT company to feature among the top five firms in terms of H-1B visa approvals.
The decline in H-1B visa approvals for Indian IT firms can be attributed to a combination of factors. One of the primary reasons is the changing landscape of the US immigration policy. In recent years, the US government has introduced stricter regulations and guidelines for H-1B visa applications, making it more difficult for companies to secure approvals. Additionally, the increase in visa rejection rates has also contributed to the decline, with many applications being denied due to minor errors or omissions.
The impact of this decline is far-reaching, with many Indian IT firms being forced to rethink their business strategies and operations. The lack of H-1B visa approvals has resulted in a shortage of skilled workers, making it challenging for companies to deliver projects and services to their clients. This, in turn, has led to a decline in revenue and profitability, affecting the overall growth and competitiveness of the industry.
The NFAP report highlights the need for the US government to reform its immigration policies and create a more streamlined and efficient process for H-1B visa applications. The report suggests that the current system is flawed, with many applications being delayed or denied due to bureaucratic red tape. By simplifying the process and reducing the backlog of applications, the US government can help to support the growth of the Indian IT industry and promote economic development.
Furthermore, the report emphasizes the importance of H-1B visas in driving innovation and economic growth in the United States. The program allows US companies to hire highly skilled foreign workers, who bring new ideas and perspectives to the table. By restricting the number of H-1B visas available, the US government is essentially limiting the pool of talent and expertise that can contribute to the country’s economic development.
In addition to the challenges faced by Indian IT firms, the decline in H-1B visa approvals has also had a significant impact on the US economy. The NFAP report estimates that the reduction in H-1B visa approvals has resulted in a loss of billions of dollars in revenue and economic output. This, in turn, has affected the competitiveness of US companies, making it more challenging for them to innovate and grow.
To address this issue, the US government needs to take a more nuanced approach to immigration policy. Rather than simply reducing the number of H-1B visas available, the government should focus on creating a more efficient and effective system for processing applications. This could involve introducing new technologies and processes to streamline the application process, as well as providing more guidance and support to companies and applicants.
In conclusion, the decline in H-1B visa approvals for Indian IT firms is a significant challenge that needs to be addressed. The NFAP report highlights the need for the US government to reform its immigration policies and create a more supportive environment for foreign workers. By doing so, the government can help to promote economic growth, drive innovation, and support the competitiveness of US companies. As the Indian IT industry continues to evolve and grow, it is essential that the US government takes a more proactive approach to addressing the challenges faced by the sector.
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